Export, banking industries seek "win-win" solution

CEBU, Philippines - Exporters yesterday met with bankers in its bid to come up with a “win-win” solution for the benefit of both industry.

PhilExport Cebu advocacy officer Jun Abines said that the meeting with bankers was initiated through the call of Cebu Provincial Governor Gwendolyn Garcia for exporters and bankers to help each other.

Exporters reportedly complained on the threats made by some banks on exporters’ distressed loan accounts. These actions of some banks have allegedly added undue pressure on most exporters who are struggling to survive the effects of the global economic distress, PhilExport-Cebu said.

While some exporters tried to cope with the crisis by streamlining operations, other companies unfortunately failed to survive and opted to shut down operations affecting thousands of employees.

Garcia earlier appealed to the bankers to be more considerate to the already ailing export industry adding that pre-terminating exporters’ loans will more counterproductive and foreclosing export loan collateral will be even more catastrophic.    

The Governor added that the banks are in a better position now to help the exporters survive these tough times rather than making them suffer the worst.

In a meeting held last month, representatives from the Cebu Bankers Club (CBC), assured the Governor that they will discuss the matter among themselves to come up with a mutual beneficial resolution to the issue. However, banks also raised their own concerns on company policies regarding distress loans as well as revenue targets that have to be achieved.

Bankers also pointed out that all banks operate under the supervision of the Bangko Sentral ng Pilipinas (BSP) which mandates banks to maintain strict liquidity ratios and meet minimum reserve requirements.

Though some banks denied that they are pressuring their clients, some exporters have named the banks that have done them otherwise. The banks suggested that exporters and their bankers should sit down and discuss problems on a case to case basis as each situation might be unique from the other.

Finally, the bankers have assured the Governor that they will bring along their credit officers to advise exporters who may need some experts help from third party banks.